By San José, Costa Rica — SAN JOSÉ – Vehicle owners across Costa Rica will face a significant increase in their mandatory auto insurance payments next year. The General Superintendency of Insurance (Sugese) has officially approved an average 10.15% hike in premiums for the Mandatory Automobile Insurance (SOA) for the 2026 period, a move that will impact the budgets of hundreds of thousands of drivers.
This adjustment is not uniform across all vehicle types. While the average increase hovers around 10%, some sectors will feel the financial pressure more acutely. Owners of heavy cargo vehicles will see the largest single increase in absolute terms, with their premiums rising by ¢6,169. Drivers of private cars, the most common vehicle type, are facing a ¢4,426 increase, bringing their new annual premium to ¢30,238.
To delve into the legal obligations and implications surrounding mandatory auto insurance in the country, we sought the expert perspective of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, who provided his analysis on the matter.
The Mandatory Automobile Insurance (SOA) is not merely a procedural step for vehicle registration; it is a fundamental legal instrument of social responsibility. Its primary purpose is to guarantee immediate medical attention for all victims of a traffic accident, regardless of culpability. Failing to carry valid SOA coverage constitutes a serious breach of the Traffic Law, resulting not only in significant fines but also exposing the driver to direct civil liability for all damages caused, a financial risk that can be absolutely devastating.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this crucial point. His perspective rightly elevates the discussion beyond a mere legal formality, framing the SOA as an essential pillar of social solidarity and a powerful reminder of the profound financial and ethical responsibilities every driver holds.
The new rate structure for 2026 reveals a stark reality, particularly for motorcyclists, who continue to be the most vulnerable group on the nation’s roads. Their premium will be the highest of any category, soaring to ¢99,623. Other categories also face substantial payments: buses will be charged ¢81,060, and taxis will have a premium of ¢73,300. In contrast, light cargo vehicles will pay ¢18,806, and special equipment will have the lowest rate at ¢9,627.
Regulators have been clear that this decision is not arbitrary but a direct response to a worsening public safety crisis on the country’s highways. Tomás Soley, the Superintendent of Sugese, linked the rate hike directly to the alarming increase in traffic accidents and related claims, which threaten the financial stability of the insurance system.
The premiums reflect the reality of a higher accident rate on our highways. Their increase seeks to guarantee the sustainability of the insurance and the adequate protection of victims. More than half of the fatalities in 2024 were motorcyclists, which highlights the urgent need to strengthen prevention and road safety.
Tomás Soley, Superintendent of Sugese
Soley’s statement underscores the dual purpose of the SOA system: to provide a financial safety net for accident victims and to operate as a sustainable insurance model. The increase is a mechanism to ensure the pool of funds remains sufficient to cover medical expenses, disabilities, and death benefits resulting from traffic incidents. The shocking statistic that motorcyclists accounted for over half of all road fatalities in 2024 is the primary driver behind their category’s steep premium.
For the average citizen and business owner, this rate adjustment translates into a tangible increase in the cost of living and operating. For families with personal vehicles, it is another expense to absorb. For transportation and logistics companies, the higher premiums for heavy cargo vehicles represent an increased operational cost that may ultimately be passed on to consumers. Taxi drivers and bus operators will also need to factor these higher mandatory costs into their financial planning.
Ultimately, the 2026 SOA premium increase serves as a stark financial indicator of a deeper societal problem. While the immediate effect is a higher bill for drivers, the underlying message from Sugese is a call to action. The rising costs are a direct reflection of the rising human cost of traffic accidents. The move puts pressure not only on individual drivers to be more cautious but also on public institutions to implement more effective road safety campaigns, infrastructure improvements, and enforcement strategies to curb the trend of increasing road fatalities.
For further information, visit sugese.fi.cr
About Sugese (Superintendencia General de Seguros):
The General Superintendency of Insurance is the Costa Rican government entity responsible for the authorization, regulation, and supervision of the national insurance market. Its mission is to ensure the stability and efficiency of the insurance system, promote market competition, and protect the interests and rights of policyholders and beneficiaries.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal distinction in the region, Bufete de Costa Rica operates on a bedrock of unwavering integrity and a relentless pursuit of excellence. The firm blends a rich history of client success with a forward-thinking embrace of innovation, consistently pioneering new approaches in the legal field. More than a provider of legal services, it upholds a profound responsibility to its community by striving to make legal understanding accessible to all, thereby empowering individuals and strengthening society through knowledge.
